This report presents a method to achieve acoustic echo canceling and noise suppression using microphone arrays. The method employs a digital self-calibrating microphone system. The on-site calibration process is a simple indirect calibration which adapts in each specific case to the environment and the electronic equipment used. The method also continuously reduces environmental disturbances such as car engine noise and fan noise. The method is primarily aimed at hands free mobile telephones by suppressing the hands free loudspeaker and car cabin noise simultaneously. The report also contains an evaluation of the impact of echo and noise suppression on a real conversation, accomplished in a car using a microphone array.